The Shipping Notice 02/2016 Rev 2 issued by the Maritime Authority of the Cayman Islands is divided into two parts:

Part A – Requirements for Pleasure Yachts operating in U.S. Navigable Waters; and

Part B – Requirements for Pleasure Yachts in Limited Commercial Use in the ‘Caribbean Cruising Area’

Annexes 1 to 4 to the Notice, set out the technical requirements necessary to comply with Parts A & B.

PART A

PLEASURE YACHTS OPERATING IN U.S. NAVIGABLE WATERS

1.0 For the purposes of the U.S. Coast Guard all yachts with gross tonnage of 300 or more (as measured under the ITC-1969) are now required to be certificated, regardless of registration type. This requirement in U.S. waters supersedes the previous understanding that for yachts with a gross tonnage of 300 or more a vessel safety certificate is not mandatory if registered as a ‘Pleasure Yacht’.

In response to this, the Cayman Islands Shipping Registry will issue a Cayman Islands National Certificate (SOC-US) in order to meet with these requirements.

No changes are required for yachts that are registered as a ‘Commercial Vessel’ or voluntarily hold certification demonstrating compliance with SOLAS or Large Commercial Yacht Code (LY3), these yachts can use their existing certificates to comply with the new requirements.

Eligibility of yachts to be issued a SOC-US

2.1 The yacht must be registered as a ‘Pleasure Yacht’ of any gross tonnage, carrying 12 or fewer passengers.

2.2 The yacht must be surveyed and certified in accordance with Section 2.5 of Part A of the relevant Shipping Notice.

2.3 As a minimum, yachts will meet the applicable requirements of LY3 set out in Annex 1 (USCG) for foreign flagged vessels in U.S. navigable waters.

Safe Manning

2.4 Prior to being surveyed under Section 2.5 of Part A, the yacht must apply for, and be issued with, a Manning Statement, which will specify the agreed manning levels and qualifications required for safe operations.

Survey and certification

2.5 For yachts to receive a SOC-US they must:

2.5.1 Be surveyed by the Cayman Islands Shipping Registry to confirm:

2.5.1.1 There is a record of safety equipment for the yacht which accurately describes the yacht and its equipment; and

2.5.1.2 That the applicable safety equipment and pollution prevention requirements set out in Annex 1 of this Shipping Notice have been complied with.

2.5.2 On satisfactory completion of the survey, the yacht will be issued with a SOC-US valid for 5 years.

2.5.3 The SOC-US will contain the following limitation:

No commercial registration or commercial operations are permitted

2.5.4 The Vessel will be subject to Annual Surveys, not more than 3 months before or no later than 3 months after the anniversary of the expiry date, in order to maintain the validity of the SOC-US, and will be subject to a Renewal Survey every 5 years.

2.6 Fees will be subject to the scope of the survey.

PART B

PLEASURE YACHTS IN LIMITED COMMERCIAL USE IN THE ‘CARIBBEAN

CRUISING AREA’

1.0 Where a ‘Pleasure Yacht’, with a gross tonnage of less than 500 is certificated and compliant with the applicable parts of Annex 1 (CISR-CCA) for Pleasure Yachts operating in the ‘Caribbean Cruising Area’ the Cayman Islands Shipping Registry has no objections to the vessel engaging in commercial activities in the Caribbean Cruising Area.

Yachts meeting the requirements of this Annex will be issued with a Cayman Islands National Certificate for use in the Caribbean Cruising Area (SOC-CCA).

The Caribbean Cruising Area is defined as follows:

Up to 60 nautical miles from a safe haven in the following countries and territories in the Wider Caribbean Region:

Any yacht wishing to engage in commercial activities is required to be in compliance with the Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations, 2002. These regulations apply regardless of the duration, frequency, or location of any commercial activities being undertaken.

Regulation 6 of the Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations, 2002, allows for the acceptance of “Equivalent Provisions” if these can be considered at least as effective as those required by the Regulations.

Yachts holding a SOC-CCA issued in accordance with the regional alternative requirements of Annex 2 to this Shipping Notice will be considered as complying with regulation 6 of the Merchant Shipping (Vessels in Commercial Use for Sport or Pleasure) Regulations, 2002, and shall be permitted to engage in limited commercial activities in the Caribbean Cruising Area.

Eligibility of yachts for operation in limited commercial use

2.1 Yachts with a gross tonnage of 300 and above and less than 500 must be classed by a Classification Society recognized by the Cayman Islands Shipping Registry; and

2.1.1 Must have a documented planned maintenance system for all identified critical equipment; and

2.1.2 Must have documented operational procedures covering all aspects of yacht operations.

2.2 Yachts with a gross tonnage of less than 300 need not be classed provided that:

2.2.1 The yacht is built to the rules of a recognised Classification Society; or

2.2.2 Built to a recognised National or International standard; and

2.2.3 Must have a documented planned maintenance system for all identified critical equipment; and

2.2.4 Must have documented operational procedures covering all aspects of yacht operations.

2.3 The yacht must hold a valid International Load Line Certificate issued in accordance with LY3 for at least a short range yacht.

Limitations on commercial use.

3.1 Commercial operations under a SOC-CCA are limited to a maximum distance of 60 nautical miles from a safe haven.

3.2 Commercial operations are limited to a maximum of 120 days in a 365 day period.

3.3 A maximum of 12 passengers, or guests, may be carried whilst the yacht is at sea.

3.5 The yacht must apply for, and be issued with, a Manning Statement, which will specify the agreed manning levels and qualifications required for safe operations.

Seafarer Welfare

4.1 The Maritime Labour Convention 2006 (MLC 2006) applies to all vessels in commercial use of any size, and all seafarers working on such vessels. For the duration of any commercial activity covered by this Shipping Notice –

4.1.1 Seafarers employed on the yacht must be employed under a contract of employment which meets the minimum requirements of MLC 2006 for a Seafarers Employment Agreement. A model agreement can be found on the MLC section of the Cayman Registry website.

4.1.2 There must be an onboard complaints procedure complying with the latest revision of Shipping Notice 04/2014.

4.1.3 There must be insurance, or other financial security, in place to cover the costs associated with long term sickness or injury, death, and repatriation of seafarers.

4.1.4 There is no requirement for MLC Certification, including DMLC Parts 1 & 2, for any vessel with a gross tonnage of less than 500.

4.1.5 Existing vessels constructed before 20th August 2013 need not comply with the construction requirements of MLC 2006. Vessels built after this date will be considered on a case by case basis.

4.2 Compliance with the above requirements will be confirmed during the surveys required by Section 5 of Part B of this Shipping Notice.

Survey and certification

5.0 For yachts to receive a SOC-CCA they must:

5.1.1 Be surveyed by the Cayman Islands Shipping Registry to confirm –

5.1.1.1 That a record of safety equipment for the yacht, which accurately describes the yacht and its equipment, has been issued; and

5.1.1.2 The applicable requirements of LY3, as required by Annex 1 and as amended by the regional requirements contained in Annex 2, are complied with; and

5.1.1.3 Seafarer welfare conditions are in accordance with section 4 of this Annex; and

5.1.1.4 The signed Master’s declaration required by section 3.4 is on board; and

5.1.1.5 That yachts with a gross tonnage of 300 or above holds a valid Certificate of Class from a Classification Society recognised by the Cayman Islands Shipping Registry; and

5.1.1.6 The yacht holds a valid International Load Line Certificate, issued in accordance with LY3 for at least a short range yacht; and

5.1.1.7 All other statutory certification as applicable is on board.

5.1.1.8 On satisfactory completion of the survey, the yacht will be issued with a SOC-CCA valid for 5 years.

5.2 The SOC-CCA will contain the following limitations:

This yacht is restricted to operating in forecast or actual wind of up to, and including, Beaufort Force 6 and significant wave height up to, and including, 2 metres within 60 nautical miles of a safe haven.

Commercial operations are limited to the ‘Caribbean Cruising Area’ as defined in the Shipping Notice 02/2016

5.3 The Vessel will be subject to Annual Surveys not more than 3 months before or no later than 3 months after the anniversary of the expiry date to maintain the validity of the SOC-CCA, and will be subject to a Renewal Survey every 5 years.